Whistleblower Helps DOJ Settle Biopharmaceutical Company False Claims Act Charges of False Commercial Billing Practices for $6.5 Million

The US District of Justice announced on April 6, 2020, that MiMedx Group Inc. (MiMedx) is based in Georgia made and sold human tissue grafts. The payment settles a claim brough by a whistleblower under the qui tam provisions of the False Claims act. The whistleblower was a sales representative. The False Claims Act per...

Justice Department Announces False Claims Act Lawsuit Settlement of Case for Kickbacks to Executives Through Sham Counseling

The US Department of Justice (DOJ) announced on March 5, 2020 that it has intervened in two whistleblower cases against Spine Frontier, Inc. (SpineFrontier) and related companies and individuals. The case was brought pursuant to the False Claims Act which allows whistleblowers to receive a percentage of any successful ...

The Purchaser of Department of Energy Loan to Pay $29 Million to Settle Alleged Bidding Fraud

The US Department of Justice announced on January 31, 2020, that “Hybrid Tech Holdings LLC, Hybrid Technology LLC, and Ace Strength International LTD, have agreed to resolve allegations that they violated the False Claims Act by colluding to rig the bidding of an auction to purchase the United States Department of En...

False Claims Summary for 2019 – Other Types of Fraud

In its January 9, 2020 press release, the US Justice Department announced approximately $3 billion in recoveries for the fiscal year 2020. In addition to healthcare and procurement fraud cases, some of the False Claims Act case recoveries and settlements included the following: Duke University paid $112.5 million ...

False Claims Act Summary for 2019 – Individual Accountability

The US Justice Department announced on January 9, 2020 that nearly $ 3 billion was recovered by the Department of Justice in False Claims Act cases. While many of the settlements were made by corporations, individuals were also required to settle claims against them for large amounts. In addition to some of the sett...

False Claims Act Summary for 2019 – Healthcare Fraud

The US Justice Department announced on January 9, 2020, that the agency had recovered more than $3 billion in fiscal year 2019 through cases brought through the False Claims Act. The use of a stronger False Claims Act has led to more than $62 billion in recoveries by the US DOJ since 1986. The qui tam whistleblower pro...

Columbus Pain Clinic and Owner Agree to Pay $650,000 to Resolve Allegations of Unnecessary Procedures

The US DOJ announced on January 24, 2020 that “Comprehensive Pain Management Institute and its owner, Leon Margolin, M.D., have agreed to pay the United States $650,000 to resolve False Claims Act allegations that they knowingly billed Medicare for nerve conduction studies and alcohol/substance abuse assessments and ...

Reasons the DOJ May Decide to Intervene in a False Claims Act Case

Whistleblowers are encouraged to file False Claims Act cases to disclose fraud involving payments by the government. The whistleblower claims are called qui tam actions. The qui tam actions often involve Medicare and Medicaid fraud. They can involve the Department of Defense or any agency that makes payments in good fa...

Reasons the DOJ May Decide Not to Intervene in a False Claims Act Case

The US Department of Justice has three options when a whistleblower files a qui tam action: It can decide to intervene. Intervention means the DOJ will agree to prosecute the case against the defendants and seek recovery for false billings and for treble damages. It can decide not to intervene. Here, the whistl...